How to create and stick to a holiday budget

The holiday season adds up.

That’s why more than a third of people are still in debt from the last holiday season, according to NerdWallet.

To try and prevent overspending, experts suggest creating a budget either with a pen and paper or something shareable with your partner, like a Google document.

While a gift list and the amount you want to spend is important, include hosting costs, decorations and travel, do not forget to budget in a little extra for the charities, if you plan on donating.

Kimberly Palmer, NerdWallet personal finance expert, said it is a good time of the year to talk spending limits not only with your partner but your kids, too.

“Children can be very demanding this time of year and have very high expectations,” Palmer said. “So it’s a really good chance to have that conversation, about how we can’t have everything and there are limits and to feel grateful for what we do have.”

When it comes to a budget, Palmer suggests what is called the 50-30-20 rule. Fifty percent of your income should go to necessities, 30 percent to wants, and 20 percent toward debt and savings.

If it is discipline you need, trying putting your spending money into an envelope and working out of that. If you prefer using a card, set spending alerts in your banking or credit card app.

Reporter:Allison Gormly
Writer:Michael Mora
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